As Benicia Unified School District prepares to wrap up spending Measure S bond funds from the first issuance of bond funding known as Series A, it is ready to collect the second and final set of bond funds— which is not to exceed $29.6 million— for Series B. BUSD’s governing board voted to approve a resolution authorizing the refunding and support of legal documents for Series B bonds.

Measure S was passed by voters in 2014 for a total of $49.6 million in bond funding to be used for construction and renovation projects at BUSD schools. Jon Isom, a managing principal with Walnut Creek-based service planning and financial advisory company Isom Advisors, delivered a presentation on the updated district general obligation bond program.

“It’s been a couple years,” Chief Business Official Tim Rahill said. “We issued Series A at $20 million, and the remaining balance to issue is $29.6 million.”

This remaining $29.6 million will be issued in Series B. The original plan was to issue 3 bond series over a span of six years, but due to low interest rates in the district, Series B and C were consolidated into one bond issuance. They will also be issued over two years, not six.

Isom said this would allow the district to save money on interest rates and how much a property owner would have to pay in taxes, and it would expedite the bond process.

“We’re able to accelerate bond projects by getting things done sooner rather than later,” he said. “This is a fantastic ratings opportunity for the district.”

Meanwhile, the district will get to maintain its tax rate estimate of $39 per $100,000 of the assessed value.

The financial adviser had discussed the issuance of Series B bonds with the board of trustees in July, and the finance team distributed drafts of the Preliminary Official Statement, bond resolution and legal documents on Aug. 5.

Trustee Andre Stewart asked if 100 percent of the bond funding would be spent over the next three years. Isom said it technically would not be 100 percent, as 5 percent in the first six months is a requirement, and different approaches can be taken to issue different percentages over the next few years.

“At the time of issuance, if it’s reasonable to assume that you’re going to spend the money or even commit the money by contract within a three-year period, then you’re not gonna have any issues,” he said.

President Gary Wing suggested that this was important information to promote to the community.

“I think it’s really important for our taxpayers to know that it’s going to be a shorter length of time, but we’re also saving millions of dollars in interests and fees,” he said.

The board voted 4-0 to approve the resolution, with trustee Peter Morgan abstaining. The board also voted 5-0 to establish a bond tax rate for the 2016-17 school year. The district will meet with a bond rating agency and receive a rating in September. The Series B bonds will be sold, and the final Preliminary Official Statement will be printed and mailed in September. The Series B bonds are slated to be closed in October.

In other business, Measure S Bond Director Roxanne Egan gave an update on how bond projects are going, and the board voted to approve two course outlines— freshman focus and Integrated Math 3— for Benicia High School. Superintendent Charles Young also formally introduced Stephen Slater as the new principal of Matthew Turner Elementary School and James D. Brown as the new vice principal of Benicia High School.

The board will next meet on Thursday, Sept. 1.

Sharing is caring!